New Delhi: Restructured Jet Airways will effectively be 51% government fund and PSU banks-owned. Sources say SBI-led lenders will convert Rs 600 crore loan into equity at Re 1, which will take their stake to 32%. National Investment and Infrastructure Fund (NIIF), an investor-owned fund manager anchored by the government of India, will pick up 19.5% and invest Rs 1,400 crore, they add. Collectively, this will mean 51.5% control with PSU banks and NIIF.
It is learnt Abu Dhabi-based Etihad, which currently has 24% stake in Jet, will invest another Rs 1400 crore, limiting its stake at 24.9% and avoiding an open offer. Etihad is expected to pick up the additional equity at Rs 150 per share. Incidentally, the Abu Dhabi Investment Authority is one of the investors in NIIF, which was set up for building infrastructure but is now bailing out the airline. Jet's remaining debt of Rs 6,000 crore will be restructured and converted into long term 10-year debt.
After this restructuring, Naresh Goyal's stake will fall from 51% to 20%. While he will remain promoter, Goyal will lose board seat and managerial control.
18/02/19 Saurabh Sinha/Times of India
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It is learnt Abu Dhabi-based Etihad, which currently has 24% stake in Jet, will invest another Rs 1400 crore, limiting its stake at 24.9% and avoiding an open offer. Etihad is expected to pick up the additional equity at Rs 150 per share. Incidentally, the Abu Dhabi Investment Authority is one of the investors in NIIF, which was set up for building infrastructure but is now bailing out the airline. Jet's remaining debt of Rs 6,000 crore will be restructured and converted into long term 10-year debt.
After this restructuring, Naresh Goyal's stake will fall from 51% to 20%. While he will remain promoter, Goyal will lose board seat and managerial control.
18/02/19 Saurabh Sinha/Times of India
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